LAWSUITS ASIDE, HUAWEI PRICES POSE NEW THREAT TO CISCO

摘要

In response to Cisco Systems' intellectual property lawsuit late last month, Huawei Technologies claimed that even though some of Cisco's code was inadvertently placed into its products, the allegation was little more than an attempt to stifle a potentially threatening competitor. Who has the upper hand in the legal fight is unclear and a matter best left to the courts. What is clear, however, is the threat that Huawei and other low-priced Asian vendors entering the market pose for Cisco. In North America, Huawei primarily competes with Cisco in the end user market, and its products are best suited for vertical markets such as education, small to medium-sized businesses and municipalities. Although Huawei is not a serious threat to Cisco's carrier business, the competition it represents in the enterprise market could have a broad impact on Cisco's business overall.